By Commodity News Service Canada
Winnipeg, August 24 – The Canadian dollar plummeted in value relative to its US counterpart Monday, weighed down after the Chinese stock market recorded massive losses.
At 4:00 CDT Monday, the loonie was at US$0.7536 or US$1 = C$1.3269.
Investors sought safe havens as the loonie hit an 11-year low.
Collapsing crude oil prices pressured the dollar while lingering concerns about economic growth as a whole also proved bearish.
The absence of any major Canadian economic data this week also served to highlight the impact of the crash, said a trader.
However, Canadian bonds finished higher Monday as investors sought fixed-term assets.
Canada’s two-year bond yield was at 0.323% Monday, down from 0.336% late Friday, according to electronic trading platform CanDeal. The 10-year bond yield was at 1.266%, down from 1.270%. Bond yields move inversely to prices.
Equity markets were hit hard however as fears that China’s economy will slow significantly gripped the market.
